Peel recorded a two jump total points score of 142.19, which included a personal best lay-tuck score of 74.62 for her double back somersault.
Jumping in front of a huge Deer Valley crowd, the World Championship was won by China's Shuang Cheng, compatriot Mengtao Xu grabbed silver while Ukrainian Olga Volkova won bronze.
In the men's event Canadian jumper Warren Shouldice won his first World Championship, after delivering a world record single jump score for his lay-triple full-full, a quadruple twisting triple backflip.
Australia's David Morris finished in 14th, unfortunately unable to qualify for the final. Morris was sitting in seventh after his first jump but unfortunately landed forward on his second jump, punch fronting his landing which narrowly kept him out of the final.